President Donald Trump is not going to win his bid at the Supreme Court to remove Federal Reserve governor Lisa Cook, predicted Vanderbilt University law professor Brian Fitzpatrick on MS NOW Wednesday afternoon.
Trump ordered Cook removed based on unproven and largely debunked allegations from Federal Housing Finance Agency chief Bill Pulte that she engaged in mortgage fraud. Federal Reserve officials can only be removed by the president for cause, and the Trump administration argues the mere accusation of fraud is sufficient cause to qualify. The Supreme Court separately appears poised to give presidents vastly more power to fire officials at independent agencies, but has already signaled they consider the Fed a special case.
Today's hearing was about whether Cook can be removed for the time being, while the judiciary considers the matter on the merits.
"All right, so, Brian, talk to me about what you heard today and where you think this goes?" said anchor Katy Tur.
"What I heard was, don't sell your stocks. The president is going to lose," said Fitzpatrick, who previously clerked for the late right-wing Supreme Court Justice Antonin Scalia. "The court seemed pretty unpersuaded by the president's arguments."
"Why not?" asked Tur.
"I think it seems like the president wants it all," said Fitzpatrick. "He wants full discretion to decide what for cause means and firing fed governors. And he doesn't want any review of those decisions. And he says there's no remedy, even if I do it wrong. And it was really the Hail Mary pass, and I don't think it landed very well."
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